Dycom Industries, Inc. (NYSE: DY) announced its fiscal 2025 first-quarter results, showcasing a notable performance improvement. The company reported contract revenues of $1.142 billion, reflecting a 9.3% increase compared to $1.045 billion in the same quarter last year.
This growth includes a 2.5% organic increase, excluding $71.2 million from acquired businesses. Non-GAAP Adjusted EBITDA rose to $130.9 million, or 11.5% of contract revenues, up from $113.5 million, or 10.9%, in the previous year. Net income also significantly rose to $62.6 million, or $2.12 per diluted share, compared to $51.5 million, or $1.73 per diluted share, in the prior year.
During the quarter, Dycom repurchased 210,000 common shares for $29.8 million, reflecting confidence in its financial health and future prospects.
The company’s strategic acquisitions and organic growth have contributed to this robust performance, indicating a well-executed business plan. The increase in net income was partly due to income tax benefits from the vesting and exercise of share-based awards, amounting to $5.9 million, or $0.20 per diluted share, compared to $2.7 million, or $0.09 per diluted share, in the same quarter last year.
Dycom Industries Beats EPS and Revenue Expectations in Q1
Comparing the current quarter’s performance against expectations, Dycom significantly outperformed the anticipated earnings per share (EPS) of $1.51 by delivering $2.12 per diluted share. This represents a substantial positive variance, showcasing the company’s ability to exceed market forecasts.
Additionally, the actual revenue of $1.142 billion surpassed the expected $1.09 billion, highlighting a strong demand for Dycom’s services and effective execution of its projects.
The company’s performance metrics, such as Non-GAAP Adjusted EBITDA and net income, indicate a successful quarter beyond just meeting expectations.
The Non-GAAP Adjusted EBITDA margin improved to 11.5% from 10.9% in the previous year, suggesting better operational efficiency and cost management. The increase in net income, bolstered by higher revenues and tax benefits, further underscores Dycom’s robust financial health and strategic prowess.
Dycom Expects Contract Revenues to Grow by High Single Digits for the Next Quarter
Dycom provided optimistic guidance for the next quarter ending July 27, 2024. The company expects organic contract revenues to grow by high single-digits compared to the same quarter last year, alongside approximately $70 million from acquired contract revenues.
This forward-looking statement suggests continued growth and integration of recent acquisitions, which are expected to contribute positively to the overall revenue.
Additionally, Dycom anticipates an increase in Non-GAAP Adjusted EBITDA as a percentage of contract revenues by 25 to 75 basis points compared to the quarter ended July 29, 2023.
This guidance indicates a focus on maintaining and potentially improving operational efficiencies while scaling up revenues. Investors and stakeholders can access detailed guidance and additional information on the company’s website, reflecting Dycom’s commitment to transparency and informed investor relations.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.
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